Artificial Inu jumps 20% amid NVDA stock pairing surge – What’s next for AI?

Artificial Inu [AI] rallied more than 20% in 24 hours, coming second by cap among Robinhood ecosystem coins that were pumping. The token is driven primarily by its unique narrative of being paired directly to NVDA stock, and more stock pairing could be on the way.

How does the AI/NVDA trading pair work?

AI crypto is offering a different way to bet on Robinhood Chain aside from that of PONS, even though both coins are tied to launchpad activity.

The memecoin is tied to the tokenized Nvidia [NVDA] stock on the Longxyz launchpad. Longxyz pairs new assets with tokenized stocks instead of tokens like Ethereum [ETH], Bitcoin [BTC], and USDT. However, AI is not Longxyz’s governance token but its de facto leader in capturing value.

The buying order fee is paid in NVDA, with 80% of the share going to the community vault while the rest goes to the original receiver. The fee for selling is paid in AI, where 50% is burned and the remainder is locked in a vault. The vault has other stocks like Microsoft and AMD.

As such, the AI/NVDA pair generated over $110 million in tokenized NVDA volume. Moreover, 27% of all NVDA supply is locked in the pool and vault, which equals $2.6 million, a $1 million growth in five days.

Furthermore, its holders are growing faster than those of NVDA. That is, AI has 36.23K, while the tokenized stock has 30.40K.

What are large holders doing?

In terms of large holder activity, they were not all in agreement. They differed as one whale swapped all of his 5.43 million CASHCAT for 4 million AI valued at $1.22 million. The swap indicated some of the capital was rotating to this token.

On the other hand, another whale was taking profits. The trader cashed out over $4.5 million, a 54x return, leaving 6.77 million AI worth $2.1 million. This capital exodus explains why the price is lagging around the $280 million market cap.

Can AI sustain its continuous market cap growth?

The memecoin is trading above a slanting support. After a new high of $0.34, the Accumulation/Distribution indicator is showing over 48 million AI tokens are being sold. This explains why the memecoin is breaking below the support.

Moreover, the Choppiness Index (CHOP) is approaching 60 as it trades at 58. This reading shows the bullish trend is weakening and the price is likely to lag.

The AI-stock pairing narrative needs to hold above the slanting support to negate the short-term bearishness indicated by the current technical outlook. Otherwise, AI may extend its correction that appears to have started. Still, traders need to be wary of pump-and-dump schemes, as AI is a new token.

Final Summary

• Artificial Inu surged past a $280 million market cap as the new narrative of launching memes paired with tokenized stocks gained pace on Robinhood Chain. 
• Unless bulls keep the price above the $0.26-$0.28 zone, a continuation for AI may not materialize.